Fitch Ratings Lessens Downgrade Risk on Iceland - The Reykjavik Grapevine

Fitch Ratings Lessens Downgrade Risk on Iceland

Published December 30, 2009

Financial analysts Fitch Ratings have lessened their downgrade on Iceland, but still give a negative review.
As reported by, Iceland’s lessened downgrade can be attributed to “the nation’s progress with its financial-sector restructuring and the country’s much-strengthened external financial position.” It also cited Iceland receiving loan payments from the IMF and Nordic countries, increasing liquidity.
For this reason, Iceland now rates at a BBB-, which is one notch into investment grade.
However, Iceland isn’t entirely out of the woods yet. The low rating is due, Fitch notes, “the slow progress Iceland is making toward normalizing financial regulations with the rest of the world.” In particular, with how slowly the government has been taking to resolve the Icesave issue. They do recognize, however, that they expect Iceland to pass the Icesave bill soon.

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